Chapter 12 Flashcards
Define the marketing concept
Whole firm directed towards serving customers at a profit
Define delivering value equation
Value = benefits/cost
Define utility + types
To add value
Time utility
Place utility
Ownership utility
Form utility
What are the 4 things marketing is designed for
Consumer goods
Industrial goods
Services
Idea
Define consumer goods
Tangible products purchased by indivs for use
Define industrial goods
Products purchased by companies to use directly/indirectly to produce other products
Define services
Intangible products to serve users’ needs
Define ideas
Thoughts, philosophies
Define relationship marketing
Building lasting relationships with customers and suppliers, working towards goal of customer satisfaction and retention
Define customer relationship marketing
Organized methods used to build info connections and improve company-client relationships
What are the 5 external marketing enviros
Competitive
Political-legal
Sociocultural
Technological
Economic
Define the political and legal envrio
Legislation, govt programs favourable or not
How do marketing managers try to maintain favour in a poltiical-legal enviro
Gaining public support for products
Advertising for public awareness of important issues
Lobbying and contributing to political parties
Define the sociocultural enviro
Reflects values, beliefs, ideas of society (ex rise of popularity in organic food)
Define economic enviro
Trends affecting price strategy and market growth, conditions affecting spending patterns of businesses and individuals, such as:
CAD dollar
Inflation/deflation
Interest rate
Business cycle
Define the tech enviro
Science and tech leading to new ways of doing everyday things, new goods continuously emerge, trends create new goods and cause others to become obsolete
Define the types of competitive envrio
Brand comp (similar: coke vs pepsi)
Substitute products (dissimilar: juice vs soda)
International comp (domestic vs foreign: ford vs honda)
Define the marketing plan
Detailed, focused strategy for gearing marketing mix to meet consumer needs and wants
Define marketing mix
Product
Price
Place
Promotion
Define a product
Offering good, service, idea satisfying consumer’s needs
Define product differentiation
Creating product having diff image than existing products to attract consumers OR changing existing products to respond to trends and improve current offerings
Why does price matter
Attracts consumers and helps company meet profit goals, has to follow a high or low price strategy, must consider all costs
Define place
Getting product from producer to consumer, choosing sales outlet, physical transportation, warehousing, inventory
Define promotion + types
Choosing right method of communicating info about product:
Advertising
Personal selling
Sales promotions
Public relations
Direct/interactive market
Define target market
Group of potential customers having similar wants and needs
Define segmentation
Dividing consumer marketing into categories, then selecting specific segments to purse positioning
Define market segmentation
Searching for common traits between consumers, focusing on traits affect product need or purchase behaviour such as:
Geographics
Demographics
Geo-demographics
Behavioural variables
Psychographics
Define geographic variables
Areas of residence affecting product consumption ex: rain = umbrella, hot summer = pool
Define geo-demographic variables
Combining geographic and demographic traits ex: young urban professionals between 25-35 with high paying jobs living in downtown
What are the 10 demographic variables
Age
Income
Family size
Ethnicity
Religion
Education
Marital status
Gender
Occupation
Language
Define psychographic variables
Consumer characteristics may be considered when developping segmentation strats such as
Lifestyle
Opinions
Interests
Attitudes
Define behavioural segmentation
Dividing market into groups based on consumer knowledge, use, or response to product
What are the behavioural variables
Benefits sought
Usage rate
Occasion for use
Loyalty status
User status
Define positioning
Process of fixing, adapting, communicating nature of product, place product occupies in consumer’s minds
Define market research
Systematic study of consumer needs focusing on marketing-mix elements, leading to more effective marketing, therefore increases accuracy and effectiveness of segmentation
What are the 5 steps to the research process
- Study current situation
- Select research method (survey, experiment etc)
- Collect data (primary and secondary)
- Analyze data
- Prepare report (make recs)
What factors influence consumer behaviour
Psychology
Personal
Social
Cultural
Define consumer behaviour
Studying process by which consumers purchase/consume a g/s
What are the 5 steps in the consumer buying process
- Problem/need recognized
- Seek info
- Evaluate alternatives
- Make a purchase decision
- Evaluate post-purchase
Define organizational markets
Organizations purchasing g/s to be used in production of other g/s done in
Industry market
Reseller market
Govt/institutional market
Define organizational buying behaviour
Differences in types of buyers:
Professionals
Specialists
Experts
What are the differences in the buyer-seller relationships
Emphasizes personal selling by trained reps understanding needs of each customer
Define product features and benefits
Consumers purchasing products for functions and benefits to them, whether tangible or not
Define value pacakge
Bundle of value-adding attributes including reasonable cost
Define a consumer product
Convenience g/s
Shopping g/s
Specialty goods
Define industrial products
Production items
Expense items
Capital items
Define product mix
Group of products a business has for sale
Define product line
Group of similar products intended for similar groups of buyers
Define new product development
Necessary to exapnd and service; expensive, risky, long term horizons; speed to market; product mortality
What is product mortality
Only 1 in 50 new ideas reaches the markets
What are the 7 steps to developping new products
- Produce idea
- Screen
- Test concept
- Analyze business
- Develop prototype
- Test product, market
- Commercialize
Define the product life cycle
Products only have limited profit-producing cycles, either months, years, or decades
What are the 3 ways to extend product life
Extension (global market)
Adaptation (modded for foreign markets)
Reintroduction (old products, new markets)
Define brand equity
Adding value to product beyond basic functional benefits
Define branding
Using symbols to communicate quality of product
How do companies gain brand awareness
Product placement
Buzz marketing
Viral marketing
Social networking
What are the 4 types of brand names
National: name of distributor/manufacturer
Private: brands carrying name of retailer
Generic: house-brand sold under category, not company
Licensed: selling rights to use names to other companies
Define packaging
Physical container
Define labelling
Identifying name, contents, benefits; conforming to Consumer Packaging and Labelling act
